[F87LUV]

Its not by choice being in AMT I mean you can hold off on prepaying state taxes but like mortgage int/property taxes you cant help so much. That would be my biggest deduction. Im salaried so its not like I can just use business expenses. Im at like a 40% tax rate with NY NYC & NJ

[Dragonman4]

this meeting is long as hell. 8-5 today and 7-5 tomorrow.

[TurboFan]

Originally Posted by ZGirl4U

Its not by choice being in AMT I mean you can hold off on prepaying state taxes but like mortgage int/property taxes you cant help so much. That would be my biggest deduction. Im salaried so its not like I can just use business expenses. Im at like a 40% tax rate with NY NYC & NJ

Mort and prop won't throw you into AMT - not by a long shot. you'd need some massive business or investment write-downs or write-offs to hit the ole' AMT. I know you wouldn't pay it by choice! Now, if you could depreciate the Z - then you might hit AMT!


Move to Cincinnati - I know a great house for sale! Low taxes relative to NYC too!

[Dragonman4]

AMT is FTL. btw what's up everyone. It was just me and mike earlier.

[TurboFan]

hey - i crashed the party.

[OEKlM]

i was watchin karate kid II last night.... damn thats a good movie... lol

[TurboFan]

I've been in the mood for a LOTR party as of late. Sadly my sub is packed up while we try to sell the house. Watching movies lately hasn't been the same

[cycler]

now its all of us

[F87LUV]

Originally Posted by TurboFan

Mort and prop won't throw you into AMT - not by a long shot. you'd need some massive business or investment write-downs or write-offs to hit the ole' AMT. I know you wouldn't pay it by choice! Now, if you could depreciate the Z - then you might hit AMT!


Move to Cincinnati - I know a great house for sale! Low taxes relative to NYC too!

Yes it can.

[F87LUV]

it just depends on your tax situation

[F87LUV]

if youre at a 35% tax rate but after your itemized deductions your effective tax rate is very low, that will throw you into AMT- it depends on the income/deds/etc

[TurboFan]

How? I'm genuinely curious - I'm certainly not going to argue tax with an accountant - I just can't figure out how you could pay enough mort interest and prop tax that it would be enough of your salary to throw you into AMT. Maybe I don't understand AMT as well as I thought I did. I know more people are getting caught in it lately, but I've never dug into why.

[TurboFan]

I paid less than 10% last year, down around 8% I think for the fed. Add another 5% for the state, I think. How did I dodge AMT? Is it a difference between married and single?

[F87LUV]

Basically, once your effective tax rate hits a certain point, the IRS says I dont think so and starts adding back deductions you may be taking and the difference is taxed at 28% opposed to 35%. The reason that more people are in it these days is because of inflation and it has not been adjusted for that so more middle class taxpayers are being thrown into it. Thats still 7% you would be saving vs the 35 but it still sucks.

[TurboFan]

and quit slapping me! I already have a headache!

[F87LUV]

Everything is a variable Jay. Filing status, the type of income you have. Youre taking business losses, ya? The most common factor throwing people into AMT is high itemized deductions plus long term capital gains.

[TurboFan]

Originally Posted by ZGirl4U

Basically, once your effective tax rate hits a certain point, the IRS says I dont think so and starts adding back deductions you may be taking and the difference is taxed at 28% opposed to 35%. The reason that more people are in it these days is because of inflation and it has not been adjusted for that so more middle class taxpayers are being thrown into it. Thats still 7% you would be saving vs the 35 but it still sucks.

hmmm....I may need to check TurboTax more closely. It said I didn't hit AMT. But I had to pay more than usual. We also made more than in the past, so that could be it.

[TurboFan]

Originally Posted by ZGirl4U

Everything is a variable Jay. Filing status, the type of income you have. Youre taking business losses, ya? The most common factor throwing people into AMT is high itemized deductions plus long term capital gains.

Hmmmm....idk, something I'll have to keep an eye on and plan around. I'm probably pretty close to AMT.

[F87LUV]

Just look at the second page of your 1040, youll see if you were in AMT if theres an amount on alternative minimum tax

[cycler]

all i can say is i really dislike tax season

[F87LUV]

lol okkk

[F87LUV]

wheres marc?